Mort­gage stress slams one mil­lion house­holds

The Courier-Mail - - NEWS -

FOR the first time, more than 1 mil­lion Aus­tralian fam­i­lies are classed as “mort­gage stressed”, with many slash­ing their spend­ing and down­siz­ing to one car to make ends meet.

Oth­ers have ditched their car al­to­gether and hire a neigh­bour’s ve­hi­cle by the hour to pick up their chil­dren from school or do their weekly gro­cery shop­ping.

Strug­gling fam­i­lies are also can­celling pay TV, choos­ing free pub­lic schools, and eat­ing out less, re­searchers have re­vealed.

Across Aus­tralia 1,003,000 house­holds are es­ti­mated to be in mort­gage stress – al­most one-third of owner-oc­cu­pied bor­row­ers – Dig­i­tal Fi­nance An­a­lyt­ics has found.

DFA prin­ci­pal Martin North said un­der­em­ploy­ment and rises in liv­ing costs – no­tably child­care, school fees and fuel – while real in­comes con­tinue to fall are caus­ing sig­nif­i­cant pain.

“Many are dip­ping into sav­ings to sup­port their fi­nances,” Mr North said.

House­holds are de­fined as “stressed” when net in­come does not cover on­go­ing costs.

DFA, which sur­veys about 4500 house­holds in its monthly polls, es­ti­mates that more than 61,000 fam­i­lies are at risk of a 30-day de­fault on their mort­gage in the next 12 months.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.